Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic Dominator Total Units produced 950 350 1,300 Machine-hours 3,100 1,500 4,600 Direct labor-hours 3,300 2,000 5,300 Direct materials costs $ 10,000 $ 3,550 $ 13,550 Direct labor costs 58,600 38,600 97,200 Manufacturing overhead costs 187,090 Total costs $ 297,840 Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. (Round your answer to 2 decimal places.)
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic Dominator Total Units produced 950 350 1,300 Machine-hours 3,100 1,500 4,600 Direct labor-hours 3,300 2,000 5,300 Direct materials costs $ 10,000 $ 3,550 $ 13,550 Direct labor costs 58,600 38,600 97,200 Manufacturing overhead costs 187,090 Total costs $ 297,840 Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. (Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:
| Basic | Dominator | Total | ||||
| Units produced | 950 | 350 | 1,300 | |||
| Machine-hours | 3,100 | 1,500 | 4,600 | |||
| Direct labor-hours | 3,300 | 2,000 | 5,300 | |||
| Direct materials costs | $ | 10,000 | $ | 3,550 | $ | 13,550 |
| Direct labor costs | 58,600 | 38,600 | 97,200 | |||
| 187,090 | ||||||
| Total costs | $ | 297,840 | ||||
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. (Round your answer to 2 decimal places.)
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